Question 2. From the following External and Internal factor evaluation matrix construct the SWOT Matrix Explain the results of both matrixes as it applied to NCB. (20 marks) Weight Rating Weighted Score Key External Factors OPPORTUNITIES 2 0.20 Paperless system through the use of technology 0.10 0.05 Development of banking apps for smart phones 0.05 and other mobile devices Utilization of debit VISA cards 0.12 0.12 Possible takeover and acquisition of competitors 0.05 0.05 stablishment of CARICOM and CSME 0.03 0.03 TREATS Page 7 of 12 0.09 2 0.18 Fluctuation of interest rates 0.08 3 0.24 Inflation fluctuations 0.06 4 0.24 Recession 0.10 2 0.20 3 0.03 0.09 Cybercrimes High unemployment rates 0.08 2 0.16 Increase in taxes 0.09 3 0.27 Direct and indirect competition 0.07 3 0.21 Natural disasters 0.05 3 0.15 Social unrest: robbery 1.00 2.19 Total Weight Rating Weighted Score Key Internal factors STRENGTHS 0.06 4 0.24 Largest Commercial Bank in the Caribbean: Market Share 0.05 4 0.20 0.08 4 0.32 Management efficiency Strong Financial Position: the bank's loan to deposit ratio has increased from 2011 to 2012 which means that the bank's reserves has increase Advanced technology 0.07 3 0.21 Island wide branches 0.04 4 0.16 Management Experience: Succession Planning 0.08 4 0.32 Customer loyalty 0.07 4 0.28 Longevity, will celebrate 175 years of existence in 2012. 0.07 4 0.28 Page 8 of 12 0.06 4 0.24 0,05 3 0.15 0.04 3 0.12 0,05 3 0.15 Wide variety of financial services Satisfactory level of customer service Social responsibility Effective Advertising Strong brand recognition 0.05 0.15 0.05 0.05 WEAKNESSES 0.04 2 0.08 Ineffective security level outside ATMs 0.07 1 0.07 Slow implementation of CRM system No clear distinction between the Mission and Vision statement 0.08 0.07 Cost is increasing faster than income form 2010-2012 3.09 1.00 Total o